Estonia Regains Top Spot in OECD Tax Competitiveness Ranking

The Tax Foundation placed Estonia at the top of the 2025 International Tax Competitiveness Index (ITCI) with a score of 100. The ranking indicates Estonia has the most competitive tax system among OECD members. This marks the twelfth consecutive year Estonia holds the first position.

The high score is driven by four positive features: a 20 % corporate tax applied only to distributed profits, a flat 20 % personal income tax that does not apply to dividends, a property tax levied solely on land value, and a territorial regime that exempts 100 % of foreign earnings of domestic companies. Estonia’s property‑tax system ranks first worldwide, while its corporate and personal income tax rates rank second. Other countries such as Latvia, New Zealand and France rank lower.

Tax Foundation measures tax competitiveness by the ability to keep marginal rates low and maintain policy neutrality. Estonia’s results suggest that a simple, territorial tax framework can boost investment appeal and ease compliance for taxpayers. In contrast, France’s complex and high‑rate system places it at the bottom of the OECD list. Read the full source at news.ddtc.co.id (https://news.ddtc.co.id/berita/internasional/1814615/estonia-kembali-jadi-negara-paling-kompetitif-soal-pajak).